Oil recovered with benchmark Brent gaining significantly after two weeks. This is seen as the biggest gain after 17 years. The fall of oil rig counts as well as fighting in Libya helped halt the sell off.
Prices have gone up almost 20 percent during the last six sessions. Yet, it remained roughly 50 percent below its peak from last year because of oversupply worldwide.
Brent futures showed a nine percent gain which is the largest since 2011 and 19 percent within the past two weeks.
The price recovery was accompanied by strong market instability.
Oil futures in the US posted day to day price swings of nine percent last week due to varied signals about crude inventories. Scores of analysts believe the market will be oversupplied until the first half of this year.
Global count for oil drilling rigs dropped to 261 last month.
Last week, 83 oil rigs also went offline.
The two-week volume in Brent reached close to 3 million contracts, based on data.
Brent settled at $1.23 (2.2 percent) at $57.80 per barrel while US crude closed at $1.21 (2.4 percent).
The violence in Libya affected international oil companies and toppled long-term investments by Western corporations. It also decimated production in Libya which is one of those responsible for setting off the global collapse in crude oil prices.
Libyan oil output declined to approximately 325,000 barrels daily last month from almost 900,000 barrels per day in October. Many oil fields have been seized by Libyan militia groups while others closed down because of the breakdown in peace and order, according to the government-owned National Oil Company.
Sidra, the major oil port, closed down because of heavy fighting.
